Essay on Yahoo! Questions and Answers

1710 Words 7 Pages
Question Number 1
When Terry Semel became Chairman and CEO of Yahoo! he faced the daunting task of guiding Yahoo! through yet another restructuring process. Was Semel correct in his assumption that another restructuring was necessary or would Yahoo! have been fine without the restructuring?
Yahoo! began as a small web site in the mid ‘90s geared toward tracking favorite sites visited by users and quickly grew into a widely used and highly popular Web browsing tool and media sensation. With Yahoo!’s initial “business plan modeled on [that of a] traditional broadcast media” company it was inevitable that at some point in the future Yahoo!’s structure would need to be adjusted to better suit the company’s needs (Wheelen & Hunger pg 13-3).
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Semel’s decision was exactly what the company needed to regain its position in the industry.
Semel’s belief that reorganizing Yahoo! into an organization focused on catering its services to three main groups was an accurate assumption necessary for securing Yahoo!’s future profitability and longevity. A company spread too thin across too many areas, as Yahoo! was previously, is literally setting itself up for failure and Yahoo! was well on its way down the road of failure before Semel’s appointment as CEO. In Yahoo!’s operations it was clear that there was an ‘audience,’ a group of persons who use the various services offered by Yahoo! and their satisfaction with those services. By creating a group focused solely on the needs of these users Semel was ensuring those users would choose Yahoo! over the competition. By enhancing their user’s experience through more efficient search and media offerings as well as by providing social communities and communications forums for their users Yahoo! quickly reestablished itself as the user-friendly company it once was. Yahoo! once again was providing everything its users needed in an easy-to-use and exciting format which allowed their users to easily access to the various tools and services offered by Yahoo!.
Semel’s second

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